World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has urged India to take a prominent role in driving reforms at the WTO, arguing that the global trading system must remain rules-based rather than dominated by power.

In her address at the 30th CII Partnership Summit 2025, Okonjo-Iweala said India is strategically positioned to benefit from major shifts in the global trade landscape. She pointed to reconfigured supply chains, the rise of green trade, and the rapid growth of digitally delivered services, suggesting India has a unique opportunity to help shape a more inclusive and flexible global trade order.

She also stressed that India’s participation in WTO reform could help correct “old wrongs”  particularly those affecting developing nations.  According to Okonjo-Iweala, India can play a key role in building a system that empowers even smaller economies rather than favoring only the most powerful.

Significance for Trade and the Economy

India’s growing economic influence particularly in technology and digital services makes it a natural candidate to help drive these reforms. The WTO chief believes this is not just an opportunity for India to gain, but also a responsibility: to uphold a rules-based trading system that benefits a wide range of nations.

She warned that without reform, the system risks becoming power-based, which could undermine the multilateral framework.

What This Means for Investors & Policymakers

• Exporters and trade-focused companies: India’s push for reform could bolster its position in global supply chains and potentially open new trade opportunities in digital and green sectors.

• Policy implications: India’s leadership could influence how WTO reform discussions evolve — particularly on issues like public stockholding, developing-nation integration, and digital trade.

• Risk and outlook: While the call for reform is strong, the success of these efforts will depend on consensus-building within the WTO and the ability of developing economies to negotiate effectively.

  Source: The Economics Times

India’s net direct tax collections have shown a healthy growth, rising 9.18% year-on-year to ₹10.82 lakh crore as of September 17, 2025, according to official data. This growth comes despite relatively muted second-quarter advance tax payments, highlighting the resilience of the country’s tax revenues.

Key Highlights:

• Advance Tax Collections: ₹4.48 lakh crore, up 2.9% in Q2.

• Gross Direct Tax Collections: ₹12.43 lakh crore, up 3.39%.

• Breakdown of Collections:

  • Corporate Tax: ₹4.72 lakh crore

  • Personal Income Tax: ₹5.83 lakh crore

  • Securities Transaction Tax (STT): ₹26,305.72 crore

• Refunds Issued: ₹1.60 lakh crore, down 23.87% compared to last year.

Despite the slower growth in advance tax payments, government officials remain confident of meeting the FY26 net direct tax target of ₹25.2 lakh crore, which is a significant jump from ₹22.3 lakh crore in FY25. Last year, direct tax collections grew 13.6%, surpassing the budgeted target.

A senior official stated, “The net collection is still growing at close to double-digit rates, and we are confident of achieving our budgeted target for FY26.”

This consistent rise in direct tax collections reflects the strength of India’s revenue system and is expected to provide additional fiscal space for government spending and development initiatives.

Source: The Economic Times

Union Finance Minister Nirmala Sitharaman has announced a major boost to the Indian economy through the latest Goods and Services Tax (GST) reforms, projected to inject approximately Rs 2 lakh crore, stimulating demand across various sectors.

Speaking at an event in Kolkata, Sitharaman said the “new generation GST reforms” are aimed at cutting tax rates, easing compliance, and removing ambiguities, directly benefiting the poor, middle class, farmers, MSMEs, and multiple industries in West Bengal.

“The GST Council’s decision to reduce rates was possible because of the cooperative spirit among states. There is no donor-donee model in GST. If revenues fall, the Centre bears it equally, and after devolution, our share is even smaller,” she said.

Key Benefits for West Bengal and Small Industries

The reforms are expected to significantly benefit sectors like handicrafts, garments, tea, jute, and agro-products, supporting festive sales in the state. Products such as ‘Nakshi Kantha’, Malda mangoes, Darjeeling tea, hosiery, and jute bags will now see lower GST rates, boosting consumption during the festive season.

The new GST rates, primarily 5% and 18%, will come into effect from September 22, the first day of Navratri, strategically chosen to coincide with Durga Puja, West Bengal’s largest festival.

“Durga Puja is a time of major purchases. The timing ensures consumers benefit from the reduced tax burden,” the Finance Minister added.

Simplification of GST Slabs

India has now largely moved from four GST slabs to two, though Sitharaman indicated that the country is not yet ready for a single GST rate, leaving that possibility for the future. The reforms have also plugged revenue leakages caused by misclassification and loopholes, such as differential tax treatment of certain products like popcorn varieties.

Impact on the Economy

The Finance Minister hailed GST as one of India’s biggest reforms, noting that these changes will spur growth, particularly in small-scale and craft-based industries, while boosting nationwide consumption.

With these reforms, consumers can expect lower taxes on essential and festive goods, businesses will enjoy simpler compliance, and the overall economy is poised for a significant boost of Rs 2 lakh crore.

Source: The Economic Times

The Goods and Services Tax (GST) Council has approved a major overhaul of India’s GST structure, effective September 22, 2025. This is the first significant revamp since GST’s launch in 2017 and aims to boost domestic spending while cushioning the impact of US-imposed tariffs on Indian goods.

The GST slabs have been simplified from four rates – 5%, 12%, 18%, and 28% – to two primary rates: 5% and 18%. Additionally, a special 40% slab will apply to high-end cars, tobacco, and luxury items.

Here’s a detailed look at what will get cheaper and costlier after the GST revamp.

What Gets Cheaper Under the New GST Rates

Food and Beverages

• Nil GST: Chapati, parathas, ultra-high temperature (UHT) milk, chena/paneer, pizza bread, and khakra.

• 5% GST: Butter, ghee, dry nuts, condensed milk, sausages, meat, sugar-based sweets, jams, fruit jellies, tender coconut water, 20-litre bottled water, fruit pulp, milk-based beverages, ice cream, pastries, biscuits, cornflakes, cereals, sugar confectionery.

• Plant-based & soya milk drinks: Tax reduced from 18%/12% to 5%.

• Other fats and cheese: Reduced from 12% to 5%.

Household Items

• Items like tooth powder, feeding bottles, kitchenware, umbrellas, utensils, bicycles, bamboo furniture, and combs: Tax cut from 12% to 5%.

• Personal care products like shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap, and hair oil: Reduced from 18% to 5%.

Household Appliances

• Electronics like air conditioners, dishwashers, and TVs: Tax reduced from 28% to 18%.

Stationery

• Items including maps, charts, globes, pencils, sharpeners, crayons, pastels, exercise books, and notebooks: Tax reduced to nil.

• Erasers: Reduced from 5% to nil.

Insurance & Policies

• Individual life and health insurance: Nil GST.

• Third-party insurance of goods carriage: Reduced from 12% (with ITC) to 5% (with ITC).

Hotel & Flight Services

• Hotel rooms up to Rs 7,500: Reduced from 12% (with ITC) to 5% (without ITC).

• Economy class flight tickets: GST reduced to 5%.

Vehicles & Auto Components

• Motorcycles up to 350 cc and small hybrid cars: Tax reduced from 28% to 18%.

• Electric vehicles: Continue at 5% GST.

• Auto components: Reduced from 28% to 18%.

• Petrol, LPG, CNG vehicles (<1,200 cc), and diesel vehicles (<1,500 cc): Reduced from 28% to 18%.

Construction & Machinery

• Cement: Reduced from 28% to 18%.

• Sewing machines & parts: Reduced from 12% to 5%.

• Agricultural machinery (tractors, pumps, nozzles, sprinklers, soil preparation and harvesting machines): Reduced from 12%/18% to 5%.

• Fertilizers and biopesticides: Tax reduced from 18%/12% to 5%.

Beauty & Fitness Services

• Health clubs, salons, barbers, fitness centers, yoga classes: Reduced from 18% to 5% GST (without ITC).

What Gets Costlier Under the New GST Rates

Aerated & Caffeinated Drinks

• Soft drinks like Coca-Cola and Pepsi and other carbonated beverages: Tax increased from 28% to 40%.

• Other non-alcoholic beverages with added sugar or flavoring: GST raised from 18%/28% to 40%.

Vehicles

• Automobiles above 1,200 cc, longer than 4,000 mm, motorcycles above 350 cc, yachts, aircrafts for personal use, and racing cars: Tax increased to 40%.

Tobacco Products

• Tobacco, cigarettes, and other related products: Remain at 28% GST plus compensation cess until state revenue loans are repaid; afterward, GST will be 40%.

Leisure & Entertainment

• Race club services, casinos, gambling, horse racing, lottery, online gaming, and IPL tickets: Tax increased to 40%.

The GST overhaul aims to make daily essentials, household items, small vehicles, and agricultural machinery more affordable. Luxury items, high-sugar beverages, and large vehicles will become more expensive, encouraging responsible consumption. These changes are effective from September 22, 2025, with a simplified structure that should make compliance easier for businesses.

Source: NDTV